Economy of Anvard
The economy of Anvard is one of the world’s most stable economies. Its policy of long-term monetary security and political stability has made Anvard a safe haven for investors, creating an economy that is increasingly dependent on a steady tide of foreign investment. Because of the country’s small size and high labour specialisation, industry and trade are the keys to Anvard’s economic livelihood. Anvard has achieved on the highest per capita incomes in the world with low unemployment rates and a low budget deficit. The service sector has also come to play a significant economic role History Anvard’s agrarian sector shrank during the Industrial Revolution. Its industrial sector began to grow in the mid-19th century, and had become the largest in Europe by the beginning of the 20th century. At this point, Anvard was the wealthiest country in Europe. During World War I, Anvard suffered an economic crisis. It was marked by a decrease in energy consumption, energy being mostly produced by coal in the 1910s, 1920s, 1930s, and 1940s. The war tax was introduced. As imports were difficult during this time, attempts were made to strengthen the Anvardian economy. The cultivation of grain was promoted, and the Anvardian railway became the first to use electric instead of coal-burning, steam driven engines. In the 1920s Anvard’s energy consumption increased. Throughout the 1930’s Anvard’s energy consumption stagnated. In the 1940’s, particularly during World War II the economy profited from the increased export and delivery of weapons to the British Empire and the German Reich. However, Anvard’s energy consumption decreased rapidly. The conduct of the banks cooperating with the Nazis and the commercial relations with the axis powers during the war became the subject of sharp criticism, resulting in a short period of international isolation of Anvard from the world. After World War II, Anvard’s production facilities remained to a great extent undamaged which facilitated the country’s swift economic resurgence. In the 1950’s, annual GDP growth averaged 5% and Anvard’s energy consumption doubled. Coal lost its rank as Anvard’s primary energy source, as other fossil fuels such as crude and refined oil and natural and refined gas imports increased. This decade also marked the transition from an industrial economy to a service economy. Since then the service sector has been growing faster than the agrarian and industrial sectors. In the 1960’s, annual GDP growth averaged 4% and Anvard’s energy consumption doubled. By the end of the decade oil was Anvard’s primary energy source. In the 1970s GDP growth rates gradually declined from a peak of 6.5% in 1970 until contracting 7.5% in 1975 and 1976. Anvard became increasingly dependent on oil imported from its main supplier, the OPEC cartel. The 1973 international oil crisis caused Anvard’s energy consumption to decrease from 1973 to 1977. In 1974 there were three nationwide car free Sundays when private transport was prohibited as a result of the oil supply shock. From 1977 onwards GDP grew, however Anvard was also affected by the 1979 energy crisis which resulted in a short term decrease if Anvard’s energy consumption. In the 1980’s, Anvard was affected by the hike in oil prices which resulted in a decrease if energy consumption until 1982 when the economy contacted by 1.3%. From 1983 on, both GDO and energy consumption grew. Sectors Banking In 2003, the financial sector compromised an estimated 26.7% of Anvard’s GDP and employed approximately 20,000 people. Anvardian neutrality and national sovereignty, long recognised by foreign nations, have fostered a stable environment in which the banking sector was to develop and thrive. Anvard has maintained neutrality through both World Wars, is not a member of the European Union and was not even a member of an international alliance until 2011. Currently an estimated 23% of all funds held outside the country of origin are kept in Anvard. In 2009, Anvardian banks managed 5.2 trillion Anvardian Pounds. The Bank of International Funds, an organisation that facilitates cooperation among the world’s central banks, is headquartered in the city of Cape Coronation. Founded in 1952, the BIF chose to locate in Anvard because if the country’s neutrality, which was important to an organisation founded by countries that had been on both sides of World War II. Foreign banks operating in Anvard manage 870 billion Anvardian pounds worth of assets. Workforce The Anvardian economy is characterised by a skilled and generally ‘peaceful’ workforce. One quarter of the country’s full time workers are unionised. Labour and management relations are amicable, characterised by a willingness to settle disputes instead of restoring to labour action. About 150 collective bargaining agreements exist today in Anvard and are regularly renewed without major problems.